What Is the Slope of the Linear Regression Prediction Equation

question 22

Multiple Choice

What is the slope of the linear regression prediction equation if a person with 12 years of schooling earns $31,000 per year and a person with 13 years of schooling earns $32,500 per year?

• A)1
• B)12
• C)13
• D)1,500

---

Definitions:

Theory of Profit

An economic theory that analyzes the dynamics of profit in the market economy, focusing on how profit is generated and distributed.

Entrepreneur

An individual who creates, organizes, and operates a business or businesses, taking on greater than normal financial risks in order to do so.

Present Value

The present value of a future amount of money or series of cash flows, taking into account a particular rate of return.

Rate of Interest

The percentage of a sum of borrowed money that is paid by the borrower to the lender for the use of that money for a certain period.